What's New August 2013
What's New! is a periodic update to keep you informed of the latest on the ECA Watch website. What's New features a wide range of materials related to the reform of Export Credit Agencies (ECAs), including NGO publications and releases, news articles, commentaries and announcements about the policies and practices of ECAs and ECA-financed projects world-wide.
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- Export credit agencies step into the breach
- Turkish Export Credit Bank plans to give $300 million credit facility to Pakistan
- Oman weighs credit risks on Egypt exports
- OECD 2012 ECA Bribery Survey Responses Now Available
- Nigeria seeks NEXIMs support on ECOWAS trade
- U.S. Export-Import Bank Hindered by Budget Fight, Hochberg Says
- Atradius DSB supports fewer applications but doubles risk exposure
- Rinehart Record Debt Lures Even as China Slows: Australia Credit
- ECAs and satellite financing
Export credit agencies step into the breach
(Business New Europe, Moscow, 17 August 2013) Seated next to Fred Hochberg in Prague is Danny Roderick, president and CEO of Westinghouse, the US nuclear company that's one the main reasons for Hochberg's visit to the Czech Republic. Westinghouse is in the midst of a battle with Russia's Rosatom to win the right to build two new nuclear reactors in the country, in a deal worth €8bn-12bn, and Ex-Im bank wants to play its part by offering low-interest loans to companies that buy American equipment and services... Hochberg, fresh from being confirmed in July by the US Senate for a 2nd term as president of Ex-Im Bank, presided over a banner year in 2012 - and 2013 looks like it could surpass even that. The bank’s overall financing in 2012 exceeded $35.7bn, backing $50bn of exports by US companies. Exports in the year continued their recovery from the depths of the global crisis in 2008, with US exports reaching a then record high of $188.7bn set in December 2012.
http://www.bne.eu/story5278/THE_INSIDERS_Export_credit_agencies_step_into_the_br...Turkish Export Credit Bank plans to give $300 million credit facility to Pakistan
(Business Recorder, Karachi, 29 August 2013) The Export Credit Bank of Turkey (Exim Bank) is to give $300 million credit facility to Pakistan for 2013-14 for which a formal pact will be signed during the 3-day (September 16-18) official visit of Prime Minister Nawaz Sharif to Turkey... According to sources, considerable scope for further Turkish investments especially in the energy (hydel/coal and wind) and infrastructure sectors exists.
http://www.brecorder.com/market-data/stocks-a-bonds/0/1225979/Oman weighs credit risks on Egypt exports
(Times of Oman, Muscat, 21 August 2013) In light of the political instability and current events in Egypt which have affected businesses, export credit agencies (ECAs) of several countries are exercising considerable caution in providing new cover to their exporters to that country. A number of ECAs have cancelled credit limits to buyers in Egypt as the payment risks have been compounded by political risks which could inhibit buyers to fulfil their payment commitments. In October 2011, ECA Watch reported that Britain was pursuing Egypt for debts of up to £100m that funded the purchase of arms.
http://www.timesofoman.com/News/Article-21225.aspxOECD 2012 ECA Bribery Survey Responses Now Available
(ECA Watch, Ottawa, 31 August 2013) The latest available OECD ECA bribery survey responses on how member ECAs implement the 2006 OECD Recommendation on Bribery and ECAs is available on their web site. However, despite the OECD's claims of transparency and effective gathering and dissemination of statistics, a confusing public link for what they say are the 2012 responses as of 30 June 2013 actually takes you to their blank 2007 questionnaire form. One has to persist and know how to uncompress all the individual country reports from another document in order to review the 2012 individual responses. It appears from the wording of the OECD announcement that only 6 of the 35 reporting countries (36 ECAs) responded to the 2012 survey. Most ECAs rely largely on reporting by corporate applicants who have little interest in providing information that might lead to rejections. In addition, some individual ECA forms (for example see p.10 Part 8 of the Atradius applicant form) only require the briefest of information on bribery, making it less likely that problematic situations will surface through this rather weak OECD monitoring and reporting process.
Nigeria seeks NEXIMs support on ECOWAS trade
(Premium Times, Abuja, 24 August 2013) The Federal Government on Friday asked the Board of the Nigeria Export-Import Bank (NEXIM) to support Nigeria in maintaining its leading position as the powerhouse in regional trade in West Africa... Mr. Ngama, Minister of State for Finance, said last year was the third time in a row that the bank was posting profit on its balance sheet and declaring dividends to its shareholders; a development that has put the bank on a path of sustained profitability. He said the management has also taken steps to clean up the balance sheet through the establishment of Debt Recovery Task Force which recovers bad debts and write-off irrecoverable legacy loan. He added that efforts have been made to improve the credit culture through training and enforcement of strict credit evaluation processes. However he asked the board to work towards securing a credit rating that would enable the bank go out and source for funds and increase its capital base.
http://premiumtimesng.com/business/143411-nigeria-seeks-nexims-support-on-ecowas...U.S. Export-Import Bank Hindered by Budget Fight, Hochberg Says
(Bloomberg, Washington, 23 August 2013) The U.S. Export-Import Bank’s ability to compete with similar lenders from nations including China and Brazil has been hurt by questions stemming from last year’s reauthorization fight, according to the bank’s chairman. Fred Hochberg said reporters have asked him on recent trips abroad about the bank’s future, after it survived a Republican campaign last year to end its lending authority. Its $140 billion lending limit runs through September 2014. “That uncertainty is damaging to U.S. competitiveness,” Hochberg said today in an interview at the bank’s headquarters in Washington.
http://www.bloomberg.com/news/2013-08-23/u-s-export-import-bank-still-hindered-b...Atradius DSB supports fewer applications but doubles risk exposure
(Atradius Dutch State Business, Amsterdam, May 2013) The 2012 Annual Review of Atradius Dutch State Business shows that while the number of approved applications actually declined in 2012 as compared to the previous year, the total aggregate nominal risk exposure in the same year more than doubled to a formidable € 16.6 billion. The Annual Review also reflects sustained efforst to expand the business of the Dutch ECA by developing new instruments, such as the 'Export Credit Guarantee' to facilitate bank financing for export transactions.
http://www.atradiusdutchstatebusiness.nl/Images/dsben/Annual%20Review%202012%20s...Rinehart Record Debt Lures Even as China Slows: Australia Credit
(Bloomberg, Sydney, 11 August 2013) Gina Rinehart, chairwoman of Roy Hill Holdings Pty, is seeking about A$4 billion (US$3.56 billion) from export credit agencies, Banks are betting the economics behind Rinehart’s 21-year-long ambition outweigh concern that $250 billion of planned mines will create a glut as slowing growth in China saps demand in the biggest buyer of the raw material.
http://www.bloomberg.com/news/2013-08-11/rinehart-record-debt-lures-even-as-chin...ECAs and satellite financing
(Satnews, Sonoma, 14 August 2013) After years that saw a clear domination by Export Credit Agency backed financing, which remains important for emerging regional players, financial transactions have picked up strongly in the satellite industry over the last 12 months. With the financial sector seemingly ready to take more risk again... Financing for satellite projects and the related challenges will be discussed from different points of view during the September 9-13 Summit for Satellite Financing welcoming executive-level speakers from leading financial institutions, ECAs and satellite operators.
http://www.satnews.com/story.php?number=1494772758&menu=1